User Auditor Responsibility with Carve-Out Method in Subservice Organization Audits

When a service auditor uses the carve-out method for controls at a subservice organization, your main responsibility as the user auditor is to D. Evaluate whether the use of the carve-out method in the service auditor’s report is appropriate.

Here's why:

• Understanding the Carve-Out Method: The carve-out method means the service auditor explicitly excludes the controls at the subservice organization from their audit scope. * User Auditor's Role: As the user auditor, you rely on the service auditor's report to assess the controls relevant to your organization's financial reporting. You need to determine if excluding the subservice organization's controls (through the carve-out method) is acceptable for your risk assessment.* Factors to Consider: This evaluation involves considering factors like the significance of the subservice organization's services to your operations and the potential risks associated with their controls being excluded from the audit.

Important Note: Options A, B, and C are incorrect in this context. It's not your responsibility to directly obtain audit evidence from the subservice organization (A), dictate the service auditor's method (B), or test controls at the subservice organization (C) when the carve-out method is used.